According to "research" Dube has conducted, both short and long term effects of increased wage on unemployment are negligible. These dubious Dube findings are based on improper methodology and fly in the face of logic.
Beyond that there are two problems with Warren's argument based on productivity. First, productivity gains are very difficult to measure. In his book, The Age of Turbulence, Alan Greenspan pointed out that the Bureau of Labor Statistics and Commerce Department, both, initially missed the productivity gains of the personal computer! (p 172)
The data we were getting from the Commerce and Labor departments showed that productivity (measured as output per hour worked) was virtually flat in spite of the long-running trend toward computerization.So any productivity gains data Warren is using should be evaluated with a great degree of skepticism. They can be off in any direction. Second, Warren is using a macro number that averages productivity over the entire jobs population. This should be viewed with even greater skepticism than her productivity claims. There is simply no basis for the view that productivity gains increase at the same rate over the entire jobs population. A hamburger flipper and a floor sweeper may see no productivity gains, while someone designing new cars may see a huge gain in productivity because of new software that makes design much easier.
Warren ignores all this in her wacky Q & A, with dubious Dube, below.